Why China has so many fake divorces
China is facing a large real-estate bubble driven in part by newly affluent Chinese buying properties as investments. The Chinese government knows this, so they've imposed a one-house-per-family rule. But as Patrick Chovanec explains, it isn't working out as they planned:
The other day, I was talking with a part-time maid we had hired to help us settle in to our new apartment after relocating within Beijing. She had told us, when we hired her, that she was divorced. Now that she had gotten to know us, however, she informed me — matter of factly — that while she was, in fact, officially divorced, she still lived happily with her husband and daughter as a family. Seeing the quizzical look on my face, she reassured me that the only reason they had gotten a divorce — a mere legal technicality — was so they could circumvent the one-home-per-family restriction and qualify to buy a second home in Beijing.
Perhaps not surprisingly, "actual, legal divorces in China are up nearly 10% this year."
| November 22, 2010; 9:00 AM ET
Save & Share: Previous: Wonkbook: A deficit rorschach test; Ireland gets a bailout; QE2 vs. its skeptics
Next: Your Amazon.com purchases should be taxed
Posted by: NoVAHockey | November 22, 2010 10:27 AM | Report abuse
Posted by: umesh409 | November 22, 2010 1:13 PM | Report abuse
Posted by: bgmma50 | November 22, 2010 11:01 PM | Report abuse